10. Current British Economy

Currently, the U.K. is the fourth largest economy in the world, with a gross domestic product （GDP） of U.S. $1.93 trillion. It has the second largest economy in Europe （after Germany）. The capital, London, is one of the two largest financial centers in the world, along with New York City.

The U.K. economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low.

Economic growth in the U.K. was 1.8 per cent in 2005 （Source: ONS, 2006） and grew by 2.7% in 2006. Gross Domestic Product （GDP） growth is expected to remain steady in 2007 with a forecast growth figure of 2.9%.

Notes

1. GDP国内生产总值，英文Gross Domestic Product的缩略语。per capita GDP 人均国内生产总值。

2. the West Indies西印度群岛，位于大西洋西部加勒比海和墨西哥湾之间，由1 200个岛屿，暗礁和环礁组成，总面积236 400平方公里。居民主要是黑人，混血人种等。

3. John M. Keynes凯恩斯（1883—1946），英国经济学家。他主张扩大国家政府对经济活动和市场的干预，认为可以通过控制信贷和货币防止经济危机，鼓吹搞福利主义。他的经济学说被称为“凯恩斯主义“（Keynesianism），在西方国家有广泛的影响。主要著作有《就业、利息和货币通论》（ The General Theory of Employment ， Interest ， and Money ）

Exercises

I. Define the following terms.

1. industrial revolution

2. the wealth of nations

3. social welfare

4. agribusiness

II. Fill in the blanks according to the text.

1. In 1765, the Scottish inventor _____ produced a very efficient _____ that could be applied to textile and other machinery.

2. After the industrial revolution, Britain became the “______” of the world.

3. During the Second World War ________ led Britain to final victory in 1945.

4. In 1974 and 1977, the two ______ shock caused inflation to rise dramatically.

5. Natural gas was discovered in 1965 and oil in 1970 under _______.

6. _______ has Europe’s largest collection of foreign owned chip factories.

7. New industries in Britain include______, ______ and other high-tech industries.

8. In the 1970s among the developed countries, Britain maintained the lowest _____ rate and the highest _____ rate.

9. soon after _____, Britain not only gave up its economic hegemony but also suffered a deep loss of its position of industrial leadership.

10. In January _____ Britain became a member of the European Economic Community.

III. Questions for discussion.

1. What are the three periods as far as the evolution of the British economy is concerned?

2. Why is British coal mining called a “sick” industry today?

3. Where were oil and natural gas found in Britain? How important are they to Britain’seconomy?

4. What are the main problems associated with Britain’s iron and steel industry today?

5. Where are the main textile producing regions in Britain? What are the reason behind the decline of Britain’s textile industry?

6. What are new industries and where can they be found in Britain?

7. Britain’s agriculture is highly mechanized, give examples to show this.